Required: Complete the following by responding either premium or discount.
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1. |
If the market rate of interest is 15% and the bond interest rate is 10%, the bonds will sell at a ______________. |
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2. |
If a bond’s interest rate is 10% and the market rate of interest is 8%, the bonds will sell at a ______________. |
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3. |
In computing the carrying amount of a bond, unamortized ______________ is subtracted from the face value of the bond. |
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4. |
In computing the carrying amount of a bond, unamortized ______________ is added to the face value of the bond. |
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5. |
If a bond sells at a ______________, an amount in excess of the face value of the bond is received on the date of issuance. |
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6. |
If a bond sells at a ______________, an amount less than the face value of the bond is received on the date of issuance. |
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